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i don't know much about this modem, but have you checked for updated windows xp drivers from your modem's vendor? it could be that the drivers you have for the modem were only for 98 and you need an updated one for xp.
as for your usb issue, it sounds like usb 2.0 isn't turned on in your computer's bios. try checking for any settings in there. you might have to turn on usb 2.0 support and then reboot.
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